1、 Price trend

According to the Commodity Market Analysis System of Business Society, the reference average price of 85% hot process phosphoric acid in China on January 1st was 6580 yuan/ton. On January 29th, the reference average price of 85% hot process phosphoric acid in China was 6430 yuan/ton. This month, the domestic price of hot process phosphoric acid decreased by 2.28%.

According to the Commodity Market Analysis System of Business Society, the reference average price of 85% wet process phosphoric acid in China on January 1st was 6450 yuan/ton, and on January 29th, the reference average price of 85% wet process phosphoric acid in China was 6366 yuan/ton. This month, the domestic wet process phosphoric acid price fell by 1.29%.

2、 Market analysis

The price of phosphoric acid in the market fell first and then rose this month. In the first half of January, the market price of phosphoric acid continued to decline. The demand for phosphoric acid in the market continues to be sluggish, with fewer inquiries and relatively quiet transactions. Phosphoric acid manufacturers and distributors have lowered prices for shipments, leading to bearish sentiment in the market. In the second half of January, the price of phosphoric acid in the market increased. The raw material yellow phosphorus market is strong, and there is support for the cost of phosphoric acid. As the Spring Festival holiday approaches, downstream demand users are actively purchasing, but overall market demand remains weak. As of January 29th, the factory price of 85 thermal process phosphoric acid in Hubei region is around 5950-6700 yuan/ton, and the factory price of 85 thermal process phosphoric acid in Sichuan region is around 6000-6900 yuan/ton. The domestic market quotation for 85 wet process phosphoric acid is around 5450-6950 yuan/ton.

Market for raw material yellow phosphorus. The price of yellow phosphorus in the market rose in January, and the overall trading situation in the yellow phosphorus market is still acceptable. In the first ten days, the downstream market situation was average, and traders and downstream buyers had average enthusiasm for purchasing. Downstream procurement was more cautious and more wait-and-see. In the middle of the year, the yellow phosphorus market was on the rise, and the overall market trading situation was relatively active. Downstream stocking was active towards the end of the year. In the latter half of the year, the price of yellow phosphorus in the market remained relatively stable, with manufacturers mainly placing early orders and completing the year-end stocking. The downstream market just needed a small amount of replenishment. As of now, the market quotation in Sichuan region is mostly around 24000 yuan/ton, and the actual transaction is negotiable.

Market for raw material phosphate rock. After the domestic phosphate ore market rose this month, it remained stable in operation. In early January, some mining companies in China began to implement new ore prices. Guizhou, Sichuan, and Guangxi regions have raised the prices of medium to high-grade phosphate ore by about 20-50 yuan/ton. Currently, the supply of phosphate ore in the field is still tight, and downstream demand for phosphate ore is mainly for rigid procurement. As of January 29th, the reference price for domestic phosphate ore market is around 1056 yuan/ton.

3、 Future Market Forecast

Business Society’s phosphoric acid analyst believes that the recent trend of the phosphoric acid market has slightly increased. The price of raw material yellow phosphorus is strong, and the cost is still supported. Downstream urgent replenishment before the holiday, some phosphoric acid manufacturers have stopped production, resulting in a decrease in market supply. It is expected that the short-term phosphoric acid market will experience a slight increase.

1、 Price trend

As of January 26th, the benchmark price of hexafluoropropylene for Shengyishe was 36850.00 yuan/ton, an increase of 8.15% compared to the beginning of this week (36820.00 yuan/ton).

2、 Price influencing factors:

This Saturday, the overall market for fluoropropylene remained relatively stable, with very few dealers adjusting prices and experiencing slight fluctuations in the short term. Due to insufficient inventory and low export volume, downstream demand for procurement led to slight fluctuations in the price of hexafluoropropylene.

3、 Future Market Forecast

Business Society’s hexafluoropropylene analyst believes that downstream purchases are mostly on demand, and the market is not doing well. It is expected that the fluoropropylene market will fluctuate and operate next Saturday.

Price trend in 2023:

According to the Commodity Market Analysis System of Business Society, the epoxy propane market will experience slight fluctuations and an increase in 2023. On January 1, 2023, the average price of epoxy propane enterprises was 8966.67 yuan/ton, and on December 31, the average price of epoxy propane enterprises was 9225.00 yuan/ton, with a 2.88% increase in the annual market.

In the first half of the year, the cost support in January was average, with no pressure on the supply side, and the demand side mainly followed up on demand. Downstream stocking was concentrated before the holiday, and the epoxy propane market saw a narrow rise. In February, the raw material propylene fluctuated narrowly, the price of raw material liquid chlorine rose, and the cost support increased. Some devices underwent load reduction and maintenance, resulting in a reduction in market supply. The demand side was wait-and-see and followed up, and the epoxy propane market operated strongly. In March, there was no pressure on the supply side at a low level, supporting market prices to rise. In the latter half of the year, cost support weakened, and shipments from factories in production were average. The market trading atmosphere was light, and the epoxy propane market was weak and consolidating. The cost side had little impact in April, while the demand side remained flat and followed suit, resulting in a narrow decline in the market. In May, the epoxy propane market fluctuated slightly, with some fluctuations on the supply side in the first half of the month. The market supply and demand pattern was tight, and the demand side watched and followed moderately. The supply side had no pressure to support the strong operation of the epoxy propane market. In the second half of the month, as the price of raw material propylene fell, the raw material liquid chlorine fluctuated at a low level. In addition, the supply side’s capacity utilization rate slightly rebounded, and the demand side’s reduction followed up, weakening the epoxy propane market. In June, the demand side mainly followed up with a moderate amount of rigid demand, while changes in supply side equipment affected the market. The trend of the epoxy propane market fluctuated and fell.

In the second half of the year, the cost support in July was average, factory shipments were still acceptable, and the demand side watched and followed up, resulting in a narrow consolidation of the market. In mid August, factory shipments were average, but downstream follow-up has weakened slightly. Some inventories have been slightly under pressure, and some companies have lowered their prices. In September, the cost support was relatively strong, with some devices experiencing a decrease in load. The demand band followed suit, but the market fluctuated slightly and rose. The cost support weakened in October, with downstream consumption of inventory raw materials as the main source. The ability to follow up on epoxy propane was average, and the market slightly declined. In November, some inventory on the supply side slightly accumulated at the beginning of the month, and prices slightly loosened. In mid month, there were individual fluctuations in the supply side equipment, and the demand side performance was flat, with a stable but weak market trend. The epoxy propane market slightly declined in December, with average cost support. In mid month, factory shipments were flat, and downstream follow-up was limited. Some inventory was under pressure, and the market was weak. In the latter half of the year, downstream purchases followed up, and inventory pressure was controllable. Some companies quoted higher prices, and the market atmosphere was still good.

Price forecast for 2024:

Supply side: In 2023, China’s epoxy propane production capacity saw a significant growth rate, with new production capacity including 150000 tons/year from Tianjin Petrochemical and 300000 tons/year from Jincheng Petrochemical. In 2023, the total production capacity exceeded 6.1 million tons/year, and the production also increased by more than 10% year-on-year. The expected continuous expansion of production capacity in 2024 is expected, with new production capacity expected to be around 3 million tons per year, and the supply side may be in a relaxed state.

Demand side: propylene oxide is an important basic chemical raw material, mainly used for the production of polyether polyols, propylene glycol and various non-ionic surfactants, among which polyether polyols are important raw materials for the production of polyurethane foam, insulation materials, elastomers, adhesives and coatings, and various non-ionic surfactants are widely used in petroleum, chemical, pesticide, textile, daily chemical and other industries. The growth rate of demand side production capacity in 2023 is not as high as that of epoxy propane, so it is mainly expected to follow up with low rigid demand. In 2024, the downstream polyether polyol and propylene glycol industries may increase production capacity.

Comparison chart of annual price trends of epoxy propane and downstream propylene glycol in 2023

Import and export: According to customs data, the total export volume of epoxy propane in China from January to December 2023 was 4303976 kilograms, a year-on-year decrease of 63.48%. According to customs data, the total import volume of epoxy propane in China from January to December 2023 was 345731204 kilograms, a year-on-year increase of 13.64%. It is expected that the import volume will continue to grow in 2024.

Cost side: Upstream propylene: In 2023, the Chinese propylene market fluctuated and declined. Taking Shandong propylene as an example, the average price at the beginning of the year was 7244.60 yuan/ton, and the average price at the end of the year was 6868.25 yuan/ton, with a 5.19% decline in the domestic market. Based on a comprehensive analysis of crude oil and supply and demand, it is expected that the center of gravity of propylene prices in 2024 may continue to decline compared to 2023, and the expected decline is relatively controllable.

Comprehensive prediction:

In summary, the expected growth of epoxy propane production capacity in 2024, market competition pressure may increase, and the timing of new production capacity deployment and the start and stop of enterprises are worth paying attention to. The demand side is also expected to increase, and downstream companies may still maintain a cautious and just need to follow up mentality while observing the loose supply side. The use and purchase model, market game consolidation situation may still exist, combined with the cost impact of different processes, It is expected that the epoxy propane market will continue to adjust its operating status in 2024.

Price trend in 2023:

In 2023, the domestic industrial grade 85% formic acid market first rose and then fell, with an overall upward trend. According to the Commodity Market Analysis System of Business Society, as of January 1, 2023, the average quotation price of 85% industrial grade formic acid enterprises in China was 3000.00 yuan/ton. As of December 31, the average formic acid price was 3150.00 yuan/ton, with a 5% increase in the market price for the year.

In the first half of the year, the transaction price of formic acid in the market was around 3000.00 yuan/ton in January. Before the Spring Festival, supply side construction was at a high level, and inventory was under pressure. Downstream stocking enthusiasm was poor, and some enterprises reduced prices to reduce inventory. After the Spring Festival, mainstream enterprises experienced equipment shutdowns and a decline in operating rates. In addition, the increase in raw material prices has strengthened cost support, and downstream demand is still acceptable. Business owners have a positive attitude, and in February, cost and supply support for formic acid prices have increased. The cost support in March is still acceptable, with the market mainly digesting inventory and slightly increasing demand. In the latter half of the year, the supply side contracted, and prices rose again, resulting in orderly market transactions. The formic acid market remained stable at a high level in April, while downstream industries such as pharmaceuticals, rubber, leather, and pesticides bought on demand in May. The overall trading volume of the market remained unchanged, and merchants shipped according to market trends. In June, the formic acid market continued to remain stable, with mainstream prices remaining around 3900 yuan/ton.

Second half of the year: In July, the supply and demand support remained relatively stable, and the market trend remained stable. In late August, some companies lowered prices to ship due to inventory pressure, and the focus of negotiations in the formic acid market remained stable with some declines. In September, some manufacturers had excess production in the early stage, and the supply side had sufficient supply of goods. However, the downstream inquiry and procurement atmosphere was weak, mainly focusing on just waiting and following up. Some inventories were under pressure, and the market declined. Cost support weakened in October, and after the Double Festival, downstream inquiries and procurement followed up on demand, with holders actively shipping and the market stabilizing. Some companies lowered their prices. In mid to early November, the situation remained stable, but towards the end of the month, downstream procurement enthusiasm was relatively weak, mainly due to rigid demand, and some companies experienced a downward pressure on prices. The market trading remained stable in the first half of December, while downstream buyers had a poor mentality in the second half. Actual market transactions were flat, with some inventory under pressure and prices falling.

Cost side: Upstream sulfuric acid: According to the commodity market analysis system of Business Society, the domestic sulfuric acid market will experience a sharp rise and fall in 2023. The average price at the beginning of the year was 286.67 yuan/ton, and the average price at the end of the year was 274 yuan/ton, a decrease of 4.42% for the whole year. Upstream Methanol: According to the Commodity Market Analysis System of Business Society, the market price of methanol fell in 2023, with a price of 2698.33 yuan/ton at the beginning of the year and 2450.00 yuan/ton at the end of the year, a decrease of 9.20% for the whole year. The cost in 2023 is generally supported by the formic acid market.

Import and export: According to customs data, the total import volume of formic acid in China from January to December 2023 was 16177 kilograms, a year-on-year decrease of 74.14%. The total export volume of formic acid in China from January to December 2023 was 279981163 kilograms, a year-on-year increase of 24.70%. The export market still provides support for the formic acid market in 2023, and it is expected that the export market support may still exist in 2024.

Comprehensive prediction:

Formic acid is one of the basic organic chemical raw materials, widely used in fields such as pesticides, leather, dyes, pharmaceuticals, and rubber. The demand for formic acid in 2024 may be relatively stable, and the procurement of formic acid in the market may continue to follow the rigid demand. The supply and demand pattern may not change much, and it is expected that the formic acid market will continue to warm up and operate in 2024. More attention still needs to be paid to changes in cost and export orders.

1、 Price trend

According to commodity data monitoring, the overall price of isopropanol is expected to decline in 2023. At the beginning of the year, the average domestic price of isopropanol was 6680 yuan/ton, and at the end of the year, the average price was 7890 yuan/ton. The price of isopropanol decreased by 18.11% during the year. The highest price of isopropanol for the year is 9300 yuan/ton, and the lowest price for the year is 6340 yuan/ton.

2、 Market analysis

From the perspective of market development in 2023, isopropanol is in a fluctuating and rising stage from January to April; 4-6 is in a declining stage; 7-9 upward phase; The price fluctuated and fell from 10 to 12.

In the first quarter, the average price of isopropanol was 6680 yuan/ton on January 1st and 6940 yuan/ton on March 31st, with a cumulative increase of 3.89% from January to March. After the January holiday, the acetone market rose, driving the isopropanol market to stop falling and rebound, and the overall market fluctuated and rose. As of the end of March, the majority of isopropanol market quotations in Shandong region were around 6500-6900 yuan/ton; The majority of prices for isopropanol in the Jiangsu Zhejiang market are around 6900-7300 yuan/ton.

In the second quarter, the average price of isopropanol was 6900 yuan/ton on April 1st, and 6440 yuan/ton on June 30th. The cumulative decline from April to June was 6.67%. The domestic isopropanol market fluctuated and rose in April. The market price of acetone continues to rise, driving confidence in the isopropanol market and causing market prices to fluctuate and rise. From May to June, raw material prices fell, and the trading atmosphere in the isopropanol market was light. Actual orders were cautious, and market confidence was insufficient. The focus shifted downwards. As of the end of June, the majority of isopropanol market quotations in Shandong region were around 6200-6400 yuan/ton; The majority of isopropanol prices in the Jiangsu region are around 6700-6800 yuan/ton.

The average price of isopropanol in the third quarter was 6440 yuan/ton on July 1st, and 9280 yuan/ton on September 30th, with a cumulative increase of 44.1% from July to September. The price of raw material acetone has risen, while propylene has slightly increased. The overall cost support has driven up the price of isopropanol in the market. In addition, the export sector has performed well, and the domestic market has also performed well. Overall, the market trading is relatively active. As of the end of September, the majority of isopropanol market quotations in Shandong region were around 9000-9300 yuan/ton; The majority of isopropanol prices in the Jiangsu and Zhejiang regions are around 9500-9600 yuan/ton.

The average price of isopropanol in the fourth quarter was 9280 yuan/ton on October 1st, and 7890 yuan/ton on December 31st. The cumulative increase from October to December was 14.98%. The prices of raw materials acetone and propylene have fallen one after another, and overall cost support is weak. The overall trading atmosphere in the market is light, with downstream and traders maintaining a wait-and-see attitude. As of the end of December, the majority of isopropanol market quotations in Shandong region were around 7500-7800 yuan/ton; The majority of isopropanol prices in the Jiangsu and Zhejiang regions are around 7900-8200 yuan/ton.

Production capacity and output

According to publicly available data, the production areas of isopropanol are mainly concentrated in Asia, North America, Western Europe, and other regions. In recent years, the isopropanol market in China has developed rapidly, and China’s isopropanol production capacity plays a crucial role in Asia and even globally. In 2021, the production of isopropanol in China was approximately 454200 tons, and in 2022, the production of isopropanol in China was approximately 473500 tons. In 2023, China’s production of isopropanol was 469900 tons.

From the perspective of competition among enterprises in China’s isopropanol industry, analysis based on enterprise production capacity shows that isopropanol production enterprises in China are relatively concentrated, with about 17 isopropanol production enterprises nationwide, with a total production capacity of about 1.165 million tons.

From the perspective of regional competition in China’s isopropanol industry, isopropanol is mainly distributed in six provinces: Shandong, Zhejiang, Jiangsu, Liaoning, Guangdong, and Hunan. Among them, Jiangsu Province has the largest production capacity, with a total production capacity of about 376000 tons, accounting for 34.3% of the national production capacity; Next is Shandong Province, with a production capacity of approximately 320000 tons, accounting for approximately 29.2%. The production capacity of Liaoning Province is about 184000 tons, accounting for 16.8%. The production capacity of isopropanol in Zhejiang, Guangdong, and Hunan is 130000 tons, 70000 tons, and 15000 tons, accounting for 11.9%, 6.4%, and 1.4%, respectively.

Import and export data

Time/ . Import volume (kg)../Export volume (kg)

2018/41854977./105382788

2019/32889801./183117591

2020./47834777./250018110

2021./45526194./119264957

2022./42817940./164566296

2023./44861220./130747755

In 2023, China imported 44861220 kilograms of isopropanol and exported 130747755 kilograms. The main export destinations for Chinese isopropanol are India, Indonesia, and Thailand. India has implemented quota based safeguard measures for the import of isopropanol, which has led to a decrease in export volume.

On April 6, 2023, the WTO Safeguards Committee issued a safeguard notification submitted by the Indian delegation to India on April 5, 2023. India decided to implement safeguard measures for imported isopropanol in the form of quotas, which are issued quarterly and valid for one year from April 1, 2023 to March 31, 2024, and will terminate upon expiration. The main countries and regions involved are Chinese Mainland, South Korea, Singapore and Taiwan, China.

3、 Future Market Forecast

Isopropanol is based on two processes: acetone and propylene. At present, the profitability of the isopropanol acetone hydrogenation process is better than that of the propylene hydration process, so the price of isopropanol mainly varies with the acetone raw material.

In 2024, China’s isopropanol production capacity will continue to increase, and overcapacity will have a significant impact on the price trend of the isopropanol market. The main market adjustment direction has also fallen on the operating rate of isopropanol. The operating load rate of isopropanol in 2024 may fluctuate very frequently.

From 2022 to 2023, domestic demand has shown a downward trend. Isopropanol is currently mainly exported, with limited domestic demand. With the end of India’s quota based safeguard measures for imported isopropanol on March 31, 2024. In 2024, China’s export of isopropanol may experience a slight increase.

In summary, in 2024, the factors affecting the price of isopropanol will still be domestic demand, exports, cost, and adjustment of operating load rate. Under the premise of a significant increase in export volume, the market will perform even stronger.